Congratulations to DTE Energy (NYSE: DTE) on the closure of their successful acquisition of Indigo Natural Resources’ interest in a gathering and disposal well system and gathering pipeline in the Haynesville shale formation of Louisiana. The transaction includes a total purchase price of $2.25 billion in cash, plus a $400 million milestone payment upon completion of a gathering pipeline in the second half of this year.
EnergyMakers is proud to have been part of the transaction team, contributing due diligence and disposal well-planning services to support the gathering systems’ water management needs going forward.
Under the terms of the agreement, DTE will acquire 100 percent of the assets from Momentum Midstream and Indigo Natural Resources, as the primary gas producer supplying the system. Assets that are part of the acquisition include an existing gathering system and a 150-mile gathering pipeline under construction, which will be in service in the second half of 2020.
The primary assets gather natural gas produced in the Haynesville shale basin and access multiple major downstream pipelines, including those serving the Gulf Coast. Also included in the deal is a 10-mile long, 20-inch diameter freshwater system with a 3 million barrel freshwater impound facility that producers can access via truck or pipeline. A produced water gathering system is 30 miles long and has associated saltwater disposal wells.
This acquisition is part of Michigan-based DTE’s strategic plan to invest $4-5 billion in its midstream business from 2019 to 2023. DTE Midstream has grown over the years to provide natural gas storage, pipeline and gathering services across the Midwest; Appalachia; Northeast and Ontario, Canada.
